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Centre Notifies Telecommunications (Regulatory Sandbox) Rules, 2026
What’s the News?
The Department of Telecommunications (DoT) under the Ministry of Communications has notified the Telecommunications (Regulatory Sandbox) Rules, 2026, enabling startups, companies, researchers and individuals to test innovative telecom technologies, services and business models in a controlled regulatory environment with temporary regulatory exemptions.
What is a Regulatory Sandbox?
- A Regulatory Sandbox is a controlled testing environment where new technologies, services, products and business models can be tested with limited users under regulatory supervision.
- It allows temporary exemptions from specified provisions of the Telecommunications Act, 2023, and the Telecom Regulatory Authority of India (TRAI) Act, 1997.
- The Central Government can establish sandboxes on its own initiative or approve proposals submitted by eligible applicants.
Provisions of the Rules
- Eligibility: Authorised telecom entities, companies, societies, partnership firms, statutory bodies, Indian citizens and R&D institutions recognised by the Department of Science and Technology (DST).
- Application Fee: Non-refundable processing fee of ₹10,000.
- Validity: Maximum initial period of 24 months, extendable by up to 12 months at a time.
- Extension requests must be submitted at least 30 days before expiry.
- Application Process: Applicants must submit proposals through the designated government portal, including previous laboratory testing reports and details of regulatory exemptions sought.
User Safeguards and Government Oversight
- User Protection: Prior informed consent is mandatory, and test users cannot be charged for participation.
- Commercial Restrictions: Technologies and services undergoing testing cannot be commercially marketed during the trial period.
- Data Protection: Compliance with applicable data protection and security laws is mandatory.
- Record Retention: Testing records must be maintained for at least one year after the sandbox expires.
- Government Oversight: The government can monitor trials, suspend or revoke approvals, and permit subsequent commercial deployment in accordance with applicable laws.
Additional Info
- Telecommunications Act, 2023:
- Section 27: Empowers the Central Government to establish regulatory sandboxes to encourage telecom innovation.
- Section 56(2)(y): Provides rule-making powers concerning the manner and duration of regulatory sandboxes.
- Telecom eServices Portal: Designated by the DoT for digital implementation of the sandbox rules.
- TRAI: A statutory regulatory body established under the TRAI Act, 1997. Prior consultation with TRAI is required for exemptions from provisions of that Act.